Learning objectives |
At the end of the course the student is able to:
• Reason in terms of scarcity, relative prices, income and substitution effects, demand and supply, markets and market imperfections, including in situations where uncertainty, interacting actors and asymmetric information play a role;
• Recognise microeconomic aspects in social problems and to analyse these aspects with a modelling approach (graphically as well as algebraically);
• Apply basic game theoretic concepts to achieve a better understanding of economic situations in which economic agents strategically interact;
• Apply psychological concepts to mainstream microeconomics to better understand the behaviour of economic agents;
• Recognise microeconomic aspects in social problems and to analyse these aspects with a modelling approach (graphically as well as algebraically) (essential skills academic reasoning and working and problem solving).
Cannot be followed by students Economics and Business Economics (U.S.E.). Cannot be combined with ECB1MI or EC1PME.|
This course is:
• Required in all Economics premaster programmes
This course is especially aimed at premaster students. It offers a profound introduction to modern microeconomics and game theory. It deals with questions like: What is the optimal consumption choice for a consumer given her preferences and income? When will a manager of a firm decide to expand production? Should monopolies be regulated and if so, how? When does it make sense for a firm to introduce a variable-wage payment scheme? Which attitudes to risk exist and how does this influence behaviour? How do firms operating in an oligopolistic market react to each other’s decisions? How does the existence of asymmetric information influence the efficiency of markets? Why do most people tend to procrastinate? Such questions, where economic decision-making is analysed in its institutional and psychological context, will be discussed in this course.
• Being able to solve problems (identifying the problem, devising a path towards the solution, following this path, verifying the outcome) for more complex assignments.
• Being able to identify, interpret and critically evaluate the main line of reasoning, for more complex problems.
• Being able to evaluate evidence in text and presentations for more complex problems.
Academic reasoning and working
• Thinking conceptually, thinking in terms of theory.
• Asking critical questions, having a curiosity-driven and critical attitude.
• Analysing questions from different perspectives.
• Identifying links between problems.
Lectures (once weekly) and tutorials (twice weekly).
• Mid-term examination, multiple choice questions (40% of the final grade);
• End-term examination, open questions (60% of the final grade).
Adequate preparation of, and active participation in 80% of the lectures and tutorials. If the student is present during a meeting but is not adequately prepared, the student can stay during the meeting but the presence does not add to the fulfilment of the effort requirement.
In case online access is required for this course and you are not in the position to buy the access code, you are advised to contact the course coordinator for an alternative solution. Please note that access codes are not re-usable meaning that codes from second hand books do not work, as well as access codes from books with a different ISBN number. Separate or spare codes are usually not available.